Businesses have a lot of rules and regulations to follow. From federal regulations all the way to local municipal laws, you need to understand everything that governs your company’s dealings. You must juggle employment law concerns, environmental guidelines, and even anti-discrimination policies all at the same time. 

Regulatory compliance often falls by the wayside for busy entrepreneurs and companies. This may lead to regulatory violations. This in turn may cause severe financial penalties, lawsuits, or even the loss of your business license.

At the Parlatore Law Group, our regulatory compliance attorneys have decades of experience we can put to work for you. We understand the complex local, state, and federal laws you must follow. Our team offers a comprehensive system to help you comply with applicable laws and regulations while continuing to succeed in the competitive business market.

What Is Regulatory Compliance and Why Should I Care?

Regulatory compliance is certainly not the most exciting part of running your company. It is, however, vital to the long-term health of your business and your profit margin. Regulatory compliance is the process of abiding by applicable:

• Regulations
• State, local, and federal laws
• Policies and procedures
• Industry standards
• Federal guidelines 

Every business of every size must ensure it follows applicable laws and regulations. This is even more critical for large businesses with an expansive business presence. For example, a large corporation that does business throughout the United States or even internationally must account for a much wider array of policies and regulations. 

As your business expands and grows, your regulatory concerns do likewise. They become incredibly more complex and nuanced at the same time. Your company must have the right systems in place to avoid errors and legal violations.

The Benefits of Regulatory Compliance For Your Business

Maintaining compliance can help you mitigate significant risks your business faces. Non-compliance can devastate your finances, your reputation, and your ability to do business.

A few of the many benefits of having a good regulatory compliance plan include:

• Protecting Your Business Reputation: Your company’s reputation with your customers and business partners is extremely valuable. Noncompliance demonstrates less responsibility and less trustworthiness for consumers and other businesses alike.
• Improving Operational Efficiency: The right regulatory compliance protocols not only keep you above water, but help you streamline your operations along the way. You can see what is working well and what is not. Your company can ensure compliance but also cut out redundancies that cost you time and money.
• Protecting Against Data Breaches and Security Threats: Cybersecurity continues to become one of the biggest concerns for businesses. Many federal and state laws center on data protection for consumers, but your businesses data is also incredibly valuable. For example, the National Institute of Standards and Technology (NIST) creates many cybersecurity standards that may be important to your business. Regular compliance checks help you follow the law and protect your data. 
• Keeping Pace With Updated Regulations: The regulatory environment is constantly changing. What is compliant in one quarter may not be in another. Congress changes laws and agencies modify regulations all the time. A skilled regulatory compliance attorney keeps you abreast of these changes and helps ensure compliance each step of the way.

Regulatory compliance protects the financial health of your company. It reduces the risk of costly litigation, regulatory fines, and much more. It also helps you stay ahead of your competition and leads to increased profitability. 

Get Help From an Experienced Regulatory Compliance Attorney

At the Parlatore Law Group, our regulatory compliance attorneys are ready to help your business. We work with companies of all sizes and in multiple jurisdictions. Our lawyers have decades of experience we use to ensure you stay compliant and improve your business operations along the way.

Our attorneys can assist with compliance, filings, and even administrative proceedings. We even offer legislative and lobbying legal analysis to keep you ahead of the game. Contact us today or schedule a consultation to learn more about how we can help.

Your small to medium-sized business could benefit from pass-through taxation. You may have heard of it, but may wonder: what is pass-through taxation? Certain business entities are allowed to “pass through” tax liabilities for federal income tax purposes, leading to several benefits for business owners.

At the Parlatore Law Group, our skilled business formation lawyers understand this special tax benefit and how to put it to use for you. We work with new business owners and veteran-owned businesses to maximize the benefits they get out of their company, including the potential for pass-through taxation. We help you understand this benefit and how to get it.

Understanding Pass-Through Taxation

Pass-through business entities are not subject to a corporate income tax. This means that all of the imputed income passes through the business entity to the individual owners or members of the business. The business calculates its tax liability by calculating its net income, or gross income less its deductible expenses. Each owner then reports this business income on their tax return in the amount they receive.

Pass-through entities avoid the double taxation faced by large corporations. A corporation is taxed as a legal entity before its shareholders receive their income. Shareholders then pay tax again on the income they receive from the company. Pass-through organizations are not subject to this double taxation.

Types of Pass-Through Businesses

Pass-through businesses are those where the income passes directly to the owners, rather than being taxed at the corporate level. Common types of pass-through businesses include:

• Sole Proprietorships: A business type that exists if you never form a legal entity for your company.
• Partnerships: A business type of two or more partners who enter into a business agreement.
• Limited Liability Companies (LLC): A business entity owned by members and who contract under an Operating Agreement.
• S Corporations: Special incorporated businesses that meet specific IRS criteria and are permitted pass-through status for tax purposes.

Determining which pass-through business type is the right one for your business is an important decision. You should speak with a qualified business attorney who can analyze your unique needs and develop the right strategy for you.

Benefits of Pass-Through Taxation

The best benefit for you is the lack of double taxation. You should not have to pay twice for the income your business brings in unless you have to. Forming an LLC or other pass-through business type may be in your best interests for tax and other reasons. 

Owners of pass-through entities may also be entitled to a qualified business income (QBI) deduction. This deduction may be up to 20% depending on various circumstances. Your business attorney can further advise you on the tax benefits associated with your particular situation.

Disadvantages of Pass-Through Taxation

The main disadvantage of pass-through taxation is the possibility you will be taxed on income you did not receive. For example, unlike corporations, pass-through entities generally cannot defer tax on profits you would like to invest in the business later.

You may also be subject to a self-employment tax if you are not subject to a corporate tax. However, for many business owners this is still the better option because of their unique tax situation.

Understand Pass-Through Taxation With Business Formation Attorneys

At the Parlatore Law Group, we know what it takes to form your business and advise you about the tax options that work best. Our team provides an in-depth consultation and analysis of your company, your business goals, and much more to help you customize your path. 

Contact us today or schedule a consultation to learn more about pass-through taxation. We are ready to help.

Legal disputes are never easy. Commercial litigation can be expensive and time-consuming. This is why many companies require arbitration of disputes in their contracts. Your business may be required to engage in arbitration before you can file a separate lawsuit. Whether you must do so is best answered by an attorney, but you need to understand the differences between arbitration and litigation to help you get started. 

At the Parlatore Law Group, we take commercial litigation seriously. Our commercial litigators have years of experience in the courtroom and handling arbitration cases. We advise you on how to handle these disputes and fight for your legal rights.

What Is Arbitration?

Arbitration is a method of resolving legal disputes outside of the court system. It is a type of alternative dispute resolution (ADR) used by many companies to avoid a costly court battle. In arbitration, both sides have their case put to an independent arbitrator or arbitrators who hear the case and make the ultimate decision.

The parties typically agree on their choice of arbitrator together, but this can be more complicated than it sounds. Federal and state laws often dictate key aspects of the arbitration process to protect everyone’s rights. 

What Is Litigation?

Litigation is taking a case to court. This is often the last resort for commercial disputes when everything else has failed. It can be time-consuming and expensive, so many businesses prefer to avoid commercial litigation if possible. 

Sometimes, however, another company refuses to pay what they owe or comply with a contract, forcing your hand. You need an experienced commercial litigator at your side in these situations.

Key Differences Between Arbitration and Litigation

There are many differences between litigation and arbitration, but the following represent some of the most important distinctions between them:

• Timeline: Arbitration is typically much faster than litigation. This is especially true for complicated cases or those filed in extremely busy courts. Many courts have years-long backlogs or your case could be tied up in significant motion practice. 
• Flexibility: Arbitration is often more flexible than litigation. The parties can make choices together, investigate the case on their own terms, and much more. Courts require stringent adherence to discovery rules, evidence rules, and much more.
• Cost: Arbitration is nearly always cheaper than litigation. The parties are better able to control their own costs, how long the case takes, and the ultimate resolution of the matter. 
• Confidentiality: Arbitration proceedings are usually confidential. This is often important when protecting trade secrets or other valuable intellectual property that is in dispute. In court, nearly everything is public record or requires intensive procedures to keep matters private.
• Contract Requirements: The business contract between two parties might require arbitration before a case may go to court. In others, it may require that any litigation be filed in a particular court.
• Appellate Process: Arbitration often has very limited appeal options. Arbitrations are usually final and binding, making it challenging or impossible to overturn a mistake. Court cases have appeal rights, but this may further increase the costs associated with the lawsuit.

Is Arbitration Better Than Litigation?

Arbitration is not necessarily better or worse than litigation—it is simply different. There are many advantages and disadvantages to both options, as you can see from the list above. 

You should consult your commercial litigation attorney to determine whether you must participate in arbitration, whether you should, and what strategies you can employ to protect your legal rights. 

Work With an Experienced Arbitration and Litigation Attorney

At the Parlatore Law Group, our business lawyers are well-versed in both arbitration and litigation strategies. We aggressively fight for your clients and protect your rights to the full extent of the law. Our lawyers negotiate potential resolutions when possible to save you time, money, and frustration. When the other party refuses to cooperate, we know how to take it to the next step.

Contact us today or schedule a consultation to learn more about arbitration and commercial litigation. We are ready to help.